5 Best TSX Stocks To Buy Right Now

In this article, we discuss 5 best TSX stocks to buy right now. If you want to read our detailed discussion on Canada’s economy, check out 5 Best TSX Stocks To Buy Right Now. 

5. Agnico Eagle Mines Limited (NYSE:AEM)

Number of Hedge Fund Holders: 42

Agnico Eagle Mines Limited (NYSE:AEM) is a gold mining company that engages in the exploration, development, and production of precious metals. Their mining operations are spread across Canada, Australia, Finland, and Mexico, while they conduct exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited (NYSE:AEM) is one of the best TSX stocks to invest in. 

On June 20, Agnico Eagle Mines Limited (NYSE:AEM) conducted an internal study that indicates increased value, a prolonged mine lifespan, and potential future production expansion at its Canadian Malartic mining complex in Quebec. The company forecasts an average annual gold production of 558,000 ounces over a 13-year period, starting from 2029, with total cash costs estimated at $768 per ounce.

According to Insider Monkey’s first quarter database, 42 hedge funds were bullish on Agnico Eagle Mines Limited (NYSE:AEM), compared to 41 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 6.2 million shares worth $318 million. 

Old West Management made the following comment about Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:

“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”

4. Canadian Natural Resources Limited (NYSE:CNQ)

Number of Hedge Fund Holders: 42

Canadian Natural Resources Limited (NYSE:CNQ) is involved in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids. The company was established in 1973, with its headquarters located in Calgary, Canada. It is one of the best TSX stocks to invest in. 

On July 12, UBS initiated coverage of Canadian Natural Resources Limited (NYSE:CNQ) with a Buy rating and a C$90 price target. According to UBS, Canadian Natural Resources Limited (NYSE:CNQ) is the leading operator in terms of cost efficiency and net back in oil sands mining and upgrading. The company’s assets, known for their long life and low decline rates, offer a competitive advantage compared to U.S. shale peers. 

According to Insider Monkey’s first quarter database, 42 hedge funds were bullish on Canadian Natural Resources Limited (NYSE:CNQ), compared to 41 funds in the preceding quarter. Donald Yacktman’s Yacktman Asset Management is the leading stakeholder of the company, with 15.2 million shares worth $842 million. 

3. Suncor Energy Inc. (NYSE:SU)

Number of Hedge Fund Holders: 45

Suncor Energy Inc. (NYSE:SU) is involved in the integrated energy sector, with its operations divided into three segments – Oil Sands, Exploration and Production, and Refining and Marketing. Suncor Energy Inc. (NYSE:SU) was established in 1917 and is headquartered in Calgary, Canada. It is one of the top TSX stocks to watch. 

On May 8, Suncor Energy Inc. (NYSE:SU) reported earnings per share of $1.02, beating market estimates by $0.09. The revenue of $9.16 billion dropped almost 12% year-over-year but outperformed Wall Street expectations by $1.36 billion. 

According to Insider Monkey’s first quarter database, 45 hedge funds were bullish on Suncor Energy Inc. (NYSE:SU), compared to 47 funds in the prior quarter. Paul Singer’s Elliott Management is the biggest stakeholder of the company, with 10 million shares worth $310.2 million. 

Artisan International Value Fund made the following comment about Suncor Energy Inc. (NYSE:SU) in its Q4 2022 investor letter:

“Suncor Energy Inc. (NYSE:SU), a Canada-based operator of oil sands mines, refineries and retail gas stations, was the third-largest contributor to return for the year, mainly due to higher oil prices. The share price increased by one third. Notably, the portfolio generated significant returns from energy stocks, including Suncor, Tenaris, Imperial Oil and tangentially Alimentation Couche-Tarde and Seven & i Holdings, both of which are in the gas station business. Given the cyclicality and commodity nature of the oil business, we have sold shares of these investments, including the complete sale of both Tenaris and Imperial Oil.”

2. Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Holders: 48

Canadian Pacific Kansas City Limited (NYSE:CP) is a transcontinental freight railway company that operates in both Canada and the United States. The company specializes in transporting different types of cargo, including bulk commodities and merchandise freight. It is one of the best TSX stocks to watch. 

On April 26, the recently merged Canadian Pacific Kansas City Limited (NYSE:CP) reported impressive year-over-year growth in revenues and operational performance in its first financial report under the new name. In the first quarter of 2023, revenues climbed 23% compared to the previous year, reaching $2.27 billion. Additionally, the core adjusted earnings per share rose from $0.67 in Q1 2022 to $0.90 in Q1 2023. The company also experienced an 11% increase in volumes, while achieving a 7.5% improvement in the adjusted operating ratio, which now stands at 63.4%.

According to Insider Monkey’s first quarter database, 48 hedge funds were bullish on Canadian Pacific Kansas City Limited (NYSE:CP), compared to 49 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 55.8 million shares worth $4.3 billion. 

Artisan Focus Fund made the following comment about Canadian Pacific Kansas City Limited (NYSE:CP) in its first quarter 2023 investor letter:

“We’ve held a large position in Canadian Pacific Kansas City Limited (NYSE:CP) for more than a year. During the quarter, Canadian Pacific completed the acquisition of the Kansas City Southern Railroad. This outcome, to us, was a best case scenario. Despite considerable fears leading up to the close, the transaction resulted in no divestitures, concessions or track usage/interchange limitations in any key regions. This was exciting, and we see a very compelling setup for the next two years. Canadian Pacific has a best-in-class management team, now running the only truly end-to-end railroad network that can stretch across the high growth west coast Canadian ports down into lower Mexico. We think both areas are key beneficiaries of our De-Globalization theme. While the merits of the deal are slowly becoming apparent, we still think the scope of the upside is underappreciated. We expect accelerating growth from here in the form of new customer acquisition and share gains by existing customers. The deal itself is particularly unique as our analysis points to essentially no cannibalization or overlapping of existing routes.”

1. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 66

Shopify Inc. (NYSE:SHOP), a Canadian e-commerce giant, is one of the best TSX stocks to monitor. On May 4, Shopify Inc. (NYSE:SHOP) reported a Q1 non-GAAP EPS of $0.01 and a revenue of $1.51 billion, outperforming Wall Street estimates $0.05 and $70 million, respectively. Merchant Solutions revenue showed significant growth, with a 31% increase to $1.1 billion compared to the previous year. This growth was mainly driven by the expansion of gross merchandise volume (GMV) and the increased adoption of Shopify Payments. Gross Payments Volume (GPV) also experienced growth and reached $27.5 billion. Subscription Solutions revenue rose 11% to $382 million compared to the prior year, with the increase in revenue primarily attributed to more merchants joining the platform, as well as higher variable platform fees and app usage. Shopify Inc. (NYSE:SHOP) is one of the best TSX stocks to invest in. 

According to Insider Monkey’s first quarter database, 66 hedge funds were bullish on Shopify Inc. (NYSE:SHOP), with combined stakes worth $2.4 billion. Cathie Wood’s ARK Investment Management held the leading stake in the company, comprising nearly 14 million shares worth $670.4 million. 

RiverPark Large Growth Fund made the following comment about Shopify Inc. (NYSE:SHOP) in its Q1 2023 investor letter:

“Shopify Inc. (NYSE:SHOP): Shopify shares were a top contributor in the quarter as the market focused on the company’s recent price increases and its ongoing market share gains in e-commerce gross merchandise volumes (GMV). Earlier in the quarter the company reported better-than-expected 4Q results, with 26% revenue growth and $248 million of FCF (at a 14% margin), significantly better than the Street consensus of -$109 million.

Last year, 10% of US retail e-commerce sales flowed through SHOP, second only to Amazon, and the company is still enjoying significant tailwinds as retail merchants of all sizes adopt SHOP’s software tools to display, manage and sell their products across a dozen different sales channels. We believe that the overall growth of e-commerce, combined with the development of new products and services, such as its digital wallet Shop Pay and its pick, pack and ship Shopify Fulfillment Network, should continue to drive revenue growth of about 20% per year over the next several years, accompanied by re-acceleration of operating margin growth and FCF generation.”

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